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Market Structure and Environmental Innovation Author info | Abstract | Publisher info | Download info | Related research | Statistics Juan-Pablo Montero (Pontificia Universidad Católica de Chile and MIT )
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This paper studies firms’ incentives to invest in environmental R&D under different market structures (Cournot and Bertrand) and environmental policy instruments (emission standards, taxes, tradable permits and auctioned permits). Because of market strategic effects, R&D incentives vary widely across market structures and instruments. For example, when firms’ products are strategic substitutes (i.e., Cournot), either emission standards, taxes or auctioned permits can provide the most incentives. But when firms’ products are strategic complements, either taxes or auctioned permits provide the most incentives. If markets are perfectly competitive, however, permits and emission standards offer similar incentives that are lower than those offered by taxes.
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Article provided by Universidad del CEMA in its journal Journal of Applied Economics .
Volume (Year): V (2002)
Issue (Month): (November)
Pages: 293-325
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Handle: RePEc:cem:jaecon:v:5:y:2002:n:2:p:293-325Contact details of provider: Postal: Av. C�rdoba 374, (C1054AAP) Capital Federal Phone: (5411) 6314-3000 Fax: (5411) 4314-1654 Email: Web page: http://www.cema.edu.ar/publicaciones/jae.html More information through EDIRC
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Keywords: environment ; regulation ; market structure ; innovation ; Other versions of this item:
Find related papers by JEL classification: L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets L50 - Industrial Organization - - Regulation and Industrial Policy - - - General Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Requate, Till, 2005.
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[Downloadable!]
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[Downloadable!] (restricted)
Maria Eugenia, SANIN & Skerdilajda, ZANAJ, 2007.
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Discussion Papers (ECON - Département des Sciences Economiques)
2007031, Université catholique de Louvain, Département des Sciences Economiques.
[Downloadable!]
Other versions: Nelissen, Dagmar & Requate, Till, 2004.
"Pollution-Reducing and Resource-Saving Technological Progress ,"
Economics Working Papers
2004,07, Christian-Albrechts-University of Kiel, Department of Economics.
[Downloadable!]
von Döllen, Andreas & Requate, Till, 2007.
"Environmental Policy and Incentives to Invest in Advanced Abatement Technology if Arrival of Future Technology is Uncertain - Extended Version ,"
Economics Working Papers
2007,04, Christian-Albrechts-University of Kiel, Department of Economics.
[Downloadable!]
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